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Chinese investors acquire Long Run Exploration for US$550 million


Chinese investors acquire Long Run Exploration for US$550 million

Report summary

On 21 December, Long Run Exploration announced a friendly takeover agreement with undisclosed Chinese investors. Consideration totals Cdn$770 million (US$550 million), with nearly 90% of that servicing debt holders. The deal cancels a previously announced private placement with Maple Marathon Investments, owned by Hong Kong listed and MIE Holdings Corporation, and ends a strategic review process that began in November 2015. The Canadian independent had oriented itself around oil-weighted growth plays in the Girouxville / Normandville Montney, Cardium and Viking, and has been materially impacted by the drop in crude prices. This is the ninth Canadian upstream company to be acquired in 2015, with most of the buyers being existing Canadian producers.

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  • Chinese investors acquire Long Run Exploration for US$550 million PDF - 283.23 KB 4 Pages, 4 Tables, 0 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Oil & gas pricing and assumptions

In this report there are 4 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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